Net Absorption

The third quarter IBI Activity Index reading came in at 53, with the inflection period coming from net absorption, new lease signings, and the proposal pipeline each at healthier levels in the third quarter compared to the 2024 average. And it added that the IBI reading showed a decline, as “supply chain activity peaked early in 2025 due to trade volatility,” adding that the recovery is nonlinear, paced by large and e-commerce companies pacing growth that is expected to be followed by other...

In its “Q2 U.S. Industrial Market Report,” the firm observed that second quarter net national absorption, at 29.9 million square-feet (MSF), was in line with the first quarter’s 30.3 MSF tally, adding that the second quarter output came in ahead of expectations, and also that demand was paced by “newly built logistics product,” which the firm defines as warehouses built since 20023.

Rising 0.6%, to 5.2%, the firm that the the industrial real estate vacancy rate decrease was driven by the pairing of muted demand and speculative constructions persisting at a healthy rate. What’s more, it added that this marks the first time the industrial vacancy rate has been above 5% going back to the third quarter of 2020, but it is still short of the 6.4% long-term 15-year average.

In its “U.S. Industrial Outlook: Q2 2022,” JLL cited various factors driving continued market strength, paced by rents topping the $8.00 per square-foot (PSF) mark, at $8.01, its highest level on record, with annual rent growth up 21% annually. Average PSF rents for warehousing & distribution and manufacturing came in at $8.04 and $7.79, respectively, with special purpose at $11.07.

The company's Industrial Business Indicator (IBI) report stated that in the fourth quarter, United States vacancy, at 3.4%, dropped to an all-time low and is expected to remain at historic lows through 2022, with market rents pegged to increase by another 10%

More than 137.9 million square-feet (MSF) of industrial product was leased, a new 2021 high, according to Data recently issued by Los Angeles-based industrial real estate firm JLL, in its “Q3 Industrial Report.

As the current package of economic and supply chain fundamentals—high levels of consumer demand, rapid order fulfillment, inventory replenishing, and clogged delivery networks, among others—remains intact, so does the current outlook for the industrial real estate market, according to data recently issued by Chicago-based industrial real estate firm CBRE.